FundSvcs Community

 View Only

  • 1.  Endowment Question

    Posted 05-02-2025 01:01 PM
    Hi everyone, happy Friday!

    I have a question about permanently restricting funds. We received a bequest that is designated for the university's general scholarship fund. It's a large amount of money, so we are considering endowing the funds. Given that entails permanently restricting the funds and we have no donor from whom to get permission. Would this be allowable? If not, would a quasi-endowment be permissible?

    Thanks in advance for any guidance!

    Beth




    ------------------------------------------------------------------------
    Beth L. Colbert, '86 '89
    Associate Vice President, Advancement and Campaign Operations

    University Advancement
    San Jose State University
    One Washington Square
    San Jose, CA 95192-0257
    408.924.1119





  • 2.  RE: Endowment Question

    Posted 05-02-2025 01:23 PM
    I would ask the Trustee or Executor. However, most institutions have an existing endowed general scholarship fund. I think you would be within your rights as the benefactor to put these funds there if they simply stated "general scholarship fund."

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Endowment Question

    Posted 05-02-2025 02:50 PM
    We are drafting an update proposal for our Gift Acceptance Policy to address this type of situation as follows:

    It shall be the policy of the institution that for bequests and estate gifts, if the donor does not specifically state whether the funds were for current use or for endowment use, the College may further restrict funds from a presumed current use into funds functioning as endowment. For gifts of $249,999 and under, this further restriction may be designated by the Gift Acceptance Committee, unless otherwise directed by the Board of Trustees.


    However, if we are within our rights as the benefactor to record the gifts to the respective endowed fund (rather than FFE), that would be our preference.




    --
    Gwen Donev
    Director of Advancement Services

    gwendonev@gustavus.edu | (o) 507-933-6515 

    Office of Advancement
    Gustavus Adolphus College
    800 West College Avenue
    Saint Peter, MN 56082


    #GoGusties



    Original Message


  • 4.  RE: Endowment Question

    Posted 05-06-2025 08:45 AM

    I think the best way to handle this is by keeping the funds in a quasi-endowment account. They are treated as endowment, but they can be accessed if necessary. I have always been under the impression that if it does not specifically say endowment, it can't be endowed.

     

    Elizabeth Rich (she/her)

    Director of Advancement Services

    Westfield State University

    Horace Mann Center, 239

    333 Western Avenue

    Westfield, MA  01085

    (413) 572-8489

    https://www.westfieldalumni.org/make-a-gift/online-giving-form

     




    Original Message


Related Content